25 management report ASSET, Financial and EARNINGS Situation Balance Sheet Structure Our strong new business results led to a further increase in total assets which rose from € 36.3 billion on 31 December 2014 to € 38.1 billion at the end of 2015. During the course of the year our mortgage loan portfolio grew by € 2.1 billion to € 25.6 billion. Domestic residential property loans were once again the strongest growing area of business and in- creased by € 1.6 billion. Our portfolio of loans is structured as follows: domestic mortgage loans € 20.0 billion (previous year € 18.4 billion), of which € 17.8 bil- lion (previous year € 16.2 billion) were residential property loans, and € 2.2 billion (previous year € 2.2 billion were commercial prop- erty loans. The level of foreign loans remained unchanged compared to pre- vious year. With a volume of € 5.6 billion (previous year € 5.0 bil- lion) foreign loans continued to represent 22 percent of our total mortgage loan portfolio. Within this segment residential property loans accounted for € 4.1 billion (previous year € 3.4 billion) while commercial property loans amounted to € 1.5 billion (previous year € 1.6 billion). Foreign loans we made consisted of residential prop- erty loans granted in Switzerland, which accounted for 71 percent of the total, while commercial property loans in the USA repre- sented 6 percent, and commercial property loans granted within European Union countries stood at 23 percent. In accordance with our business and risk strategy, our portfolio of loans and securities related to our business with the public-sector and banks contracted further from € 9.4 billion to € 8.2 billion, of which € 3.9 billion were securities and bonds. At the end of 2015 the net sum of unrealised losses and unrealised gains in our securities portfolio amounted to plus € 34 million (pre- vious year plus € 43 million). These include unrealised losses of € 10 million (previous year € 16 million) stemming from securities issued by countries located on the periphery of the eurozone and banks domiciled in these countries. The total volume of these secu- rities amounted to € 0.9 billion (previous year € 0.9 billion). Following a detailed examination of all securities we came to the conclusion that a permanent reduction in value was required for one security in the portfolio: a bond issued by HETA Asset Reso- lution AG with a nominal value of € 50 million. During the year under review we wrote down the value of this bond by an addi- tional € 2.5 million to 50 percent of its nominal value. Despite this write-down we will exhaust all legal means to recover the full value of the nominal amount. The portfolio of long-term refinancing funds increased by € 1.4 bil- lion to € 32.1 billion, of which € 20.0 billion consisted of Mortgage Pfandbriefe, € 5.0 billion of Public Pfandbriefe and € 7.1 billion of uncovered bonds. The total volume of refinancing funds – including money market funds – rose from € 33.8 billion in the previous year to € 35.4 billion on 31 December 2015. Portfolio development MünchenerHyp 2010 – 2015 in € million 2010 2011 2012 2013 2014 2015 27,000 24,000 21,000 18,000 15,000 12,000 9,000 6,000 3,000 0 18,458 19,409 20,986 21,522 23,556 25,678 Residential housing Germany Residential housing Switzerland Commercial property Germany/other property finance loans Commercial property abroad/other property finance loans 201020112012201320142015 20,98621,522